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Shipping industry in trouble-II: Are Indian refiners prepared for the sulphur cap in 2020?
May 05: The global cap on sulphur emissions will come into effect from January 1, 2020
8All ships will have to use fuel with a sulphur content not exceeding 0.5%. The cost currently of the compliant fuel is 50% more than the residual fuel
8The switch in 2020 could well mean that bunker costs can return to 2020 levels and the differential between complaint and residual fuel can spike by as much as $ 400 a tonne
8Are Indian bunker fuel suppliers in a position to be able to meet the 2020 deadline? If they are, they stand to make a killing.
8If bunker fuel becomes too expensive, then shipowners can use exhaust gas cleaning systems but then this is an unproven route as of now.
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